(1) Every long-term care insurance policy shall include a provision that allows the policyholder or certificateholder to reduce coverage and lower the policy premium in at least one of the following ways:
(a) reducing the maximum benefit; or
(b) reducing the daily, weekly, or monthly benefit amount.
(2) In addition to (1), the issuer may also offer other reduction options that are consistent with the policy design or the carrier's administrative processes.
(3) In the event the reduction in coverage involves the reduction or elimination of the inflation protection provision, the issuer shall allow the policyholder to continue the benefit amount in effect at the time of the reduction.
(4) The provision required by (1) shall include a description of the ways in which coverage may be reduced and the process for requesting and implementing a reduction in coverage.
(5) The age to determine the premium for the reduced coverage shall be based on the age used to determine the premiums for the coverage currently in force and shall be consistent with the approved rate table.
(6) The issuer may limit any reduction in coverage to plans or options available for that policy form and to those for which benefits will be available after consideration of claims paid or payable.
(7) If a policy is about to lapse, the issuer shall provide a written reminder to the policyholder or certificateholder of his or her right to reduce coverage and premiums in the notice required by ARM 6.6.3104A(1)(c).
(8) This rule does not apply to life insurance policies or riders containing accelerated long-term care benefits.
(9) This rule applies to any long-term care policy issued in Montana on or after January 1, 2009.